Trading markets order/trading practices

A customer places an order to sell bonds. The order reads "Sell 5M ABC 9s M '45 @ 90 GTC." At which of the following prices may the order be executed?

90 91 92

Which of the following customers is considered to be long 100 shares of ABC stock?

A customer who has bought 100 ABC shares in a regular way trade that has not yet settled A customer who owns two ABC convertible bonds, convertible into 50 shares each, who has given irrevocable instructions to convert A customer who owns 100 ABC warrants and has exercised those warrants

Which of the following can result in the creation of a short position?

Buying a stock on one exchange and simultaneously selling it on another exchange Selling stock for a customer that is not owned by that customer Selling stock for the firm's account that is not owned by the firm

A customer wants to place an order to buy stock immediately. What order should be placed?

Market

In a rising market, which orders will be executed?

Open Buy Stops Open Sell Limits

The orders that are higher in price than the current market are:

Open Buy Stops Open Sell Limits

Which of the following is an order to sell that is placed below the current market?

Sell 100 ABC @ 50 Stop

Which of the following statements are TRUE regarding stop orders?

Stop orders are placed "away" from the current market Stop orders can limit loss on a long stock position Stop orders can protect a profit on a long stock position

A customer places an order to buy bonds. The order reads "Buy 5M ABC 9s M '35 @ 90 GTC." Which statement is TRUE about this order?

The order must be executed at a price of 90% or better

A customer places an order to sell 100 XYZ at 38 Stop. Which of the following statements are TRUE?

The order will be elected at 38 or lower As soon as the order is elected, the order becomes a market order which is filled at the next available price

If a customer has a gain on a short stock position that he wishes to protect, which of the following statements are TRUE?

The order will be placed above the current market price A buy stop order will be entered

All of the following information must be on an order ticket before it can be entered EXCEPT:

amount of accrued interest to be paid

Orders that are placed lower than the current market are:

buy limits sell stops

John Jones has both a cash account and an IRA account at your firm. Mr. Jones calls and asks that 2,000 shares of DEF stock be purchased at the market in his IRA account. The trade is executed, however the transaction was recorded in Mr. Jones' cash account. The proper procedure to correct this is to:

create a written record canceling the transaction from the cash account and rebilling the transaction to the IRA account, approved by the branch manager

An order ticket is marked: Sell (Short) 100 ABC @ $50. This means that the customer:

does not own the shares will borrow shares to deliver on settlement

An unpriced order that is routed to a securities trading venue is a:

market order and is filled immediately

All of the following customers are considered to be long 100 shares of ABC stock EXCEPT a customer who:

owns 1 ABC call contract

A firm's market making desk, aware that the firm is about to publish a bullish research report on ABCD stock, purposefully increases its long position in order to satisfy anticipated retail demand. This action is:

prohibited

All of the following statements are true regarding stop orders EXCEPT:

stop orders allow a specific execution price to be "locked-in"

A customer places an order to "Sell 100 ABC @ 90 Stop." The customer wishes to sell the stock at:

the market price, if the market falls to $90 per share or lower

A customer places an order to "Buy 100 ABC @ 90 Stop." The customer wishes to buy the stock at:

the market price, if the market rises to $90 per share or higher

Buy limit orders:

used to buy securities at prices that are lower than the current market price guarantee a specific execution price or better

Sell limit orders:

used to sell securities at prices that are lower than the current market price guarantee a specific execution price or better